Correlation Between Embracer Group and Idogen AB
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By analyzing existing cross correlation between Embracer Group AB and Idogen AB, you can compare the effects of market volatilities on Embracer Group and Idogen AB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Embracer Group with a short position of Idogen AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embracer Group and Idogen AB.
Diversification Opportunities for Embracer Group and Idogen AB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Embracer and Idogen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Embracer Group AB and Idogen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idogen AB and Embracer Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Embracer Group AB are associated (or correlated) with Idogen AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idogen AB has no effect on the direction of Embracer Group i.e., Embracer Group and Idogen AB go up and down completely randomly.
Pair Corralation between Embracer Group and Idogen AB
Assuming the 90 days trading horizon Embracer Group AB is expected to under-perform the Idogen AB. But the stock apears to be less risky and, when comparing its historical volatility, Embracer Group AB is 6.89 times less risky than Idogen AB. The stock trades about 0.0 of its potential returns per unit of risk. The Idogen AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Idogen AB on September 6, 2024 and sell it today you would lose (6.00) from holding Idogen AB or give up 33.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Embracer Group AB vs. Idogen AB
Performance |
Timeline |
Embracer Group AB |
Idogen AB |
Embracer Group and Idogen AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Embracer Group and Idogen AB
The main advantage of trading using opposite Embracer Group and Idogen AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embracer Group position performs unexpectedly, Idogen AB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Idogen AB will offset losses from the drop in Idogen AB's long position.Embracer Group vs. Evolution AB | Embracer Group vs. Sinch AB | Embracer Group vs. Samhllsbyggnadsbolaget i Norden | Embracer Group vs. Stillfront Group AB |
Idogen AB vs. Mendus AB | Idogen AB vs. Combigene AB | Idogen AB vs. Lidds AB | Idogen AB vs. BioInvent International AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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